Statutory Brief · Comparison
Historical VDA Remediation Advisory vs. Annual Compliance Software: Which Comes First?
Compliance software automates future annual NAUPA II generation—it cannot reconstruct missing 15-year ERP ledgers, negotiate Form VDA-2 closures, or rebut Kelmar extrapolation.
Key Statutory Findings & Holder Guidance
Software excels once historical lookbacks are closed and clean annual AP/payroll/AR feeds are established.
Turning on automated annual reporting software while carrying 8–12 years of unfiled prior liability can accidentally alert states to historical gaps via sudden positive or zero filings.
Best-practice sequence: (1) Complete historical VDA/VCP remediation with a Holder Advocate -> (2) Establish written policies -> (3) Automate forward annual reporting.
Corporate finance and tax teams evaluating these rules should verify entity-specific incorporation history and prior filing logs before submitting positive or negative reports to state portals.